Doyle’s Redirected Tax

It’s things like this that make me reflexively oppose any tax that is ever sold as “temporary” or “targeted.”  They are rarely either after the passage of time. 

Earlier this year we reported on Governor Jim Doyle’s proposed budget with $1.7 billion in higher taxes, as well as his “state economic stimulus bill” that amounted to $1.2 billion in tax hikes.  Now, Doyle has announced further proposals to rectify the state’s $6.6 billion overspending problem, including extending the tax on cell phones.

In 2003, the state created the cell phone tax to upgrade 911 response services.  When the upgrade was done, it left a balance of $20 million in the state’s coffers, which was slated to be returned back to consumers as a credit on their phone bill.

However, Gov. Doyle has now proposed extending the cell phone tax, raising it by 75-cents, and then making it applicable to all landlines as well.  Oh, then he would then add another 56-cent tax to cell phones for the state’s Universal Service Fund, which has nothing to do with cell phone usage.  All told, the proposal amounts to a $100 million per year tax increase on cell phone users.

Hat tip Wigderson.

1. But but but Doyle said he would not increase taxes….

   But but but the liberals said my taxes would not go up unless I earned $300k.

   Isn’t this regressive?

   I’m confused.  Did the Governor and the Democrats lie?

   Posted by (JavaScript must be enabled to view this email address) on May 26, 2009 at 2135 hrs




2. Fred - Yes.

   Kelly

   Posted by Kelly on May 29, 2009 at 1515 hrs




3. Lucky for us, we just combined our cell plans with my wife’s parents plan, they live out of state so I think this won’t affect us.

   Posted by Matt on June 01, 2009 at 1031 hrs